HKEX chief expects more IPOs under Hong Kong’s new listing regime after summer break
Companies need time to prepare for listings, says Charles Li Xiaojia
Charles Li Xiaojia, chief executive of the Hong Kong bourse operator Hong Kong Exchanges and Clearing, said on Thursday he believed more companies would apply for initial public offerings under a new listing regime after the summer holiday.
“Many inquiries have been made regarding the new listing regime. These companies’ sponsors and other professional teams need time to prepare their listing documents. We hope they can file before the summer holiday in July and August. Otherwise, they are more likely to file in September or October, after the holiday,” Li said on the sidelines of LME Asia Week 2018.
I think we will see many more applications in the coming months
After four years of debate and consultation, the HKEX kicked off its largest listing reform in 25 years on April 30, allowing technology giants with dual-class shareholding structures and biotechnology companies without revenue to list in the city.
About three weeks later, however, only two applications have been received by the bourse – among them Xiaomi’s mega IPO. The Beijing-based smartphone maker filed its application to list in the city on May 3, becoming the first company to do so under the new regime.
And Hangzhou-based Ascletis Pharma, which is close to commercialising a new drug to treat Hepatitis C in the mainland China, became the first pre-revenue biotechnology company to apply for a listing. It submitted its application on May 7.